SpiceJet gains as operating performance improves

Stock up over 5% at Rs 15.28

SpiceJet surged in today's trade with gains of over 5% at Rs 15.28 as the budget carrier’s operating performance improved with higher revenue per seat amid reduced capacity.

However, the top official warned the loss-making airline still needs new funding to anchor its turnaround efforts. "Our challenge is our legacy losses and this cannot be solved by operational cash flows alone, but by funding or recapitalisation," Sanjiv Kapoor, chief operating officer at India's No. 3 airline by market share as of August, told Reuters in an interview.

SpiceJet previously said it was in "advanced" talks with an external entity to get funding.

The stock opened at Rs 14.55 which was also around the low point of the day thus far. A spurt in volume by more than 2.43 times was observed on the Bombay Stock Exchange.

The company is not listed on the National Stock exchange.